ASR — Grupo Aeroportuario del Sureste, S. A. B. de C. V.

ASUR Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Passenger Traffic: Handled 17.9 million passengers in Q4 2025, up nearly 1% year-on-year; total annual passenger traffic reached nearly 72 million.
• Revenue: Total revenue flat at MXN 7.3 billion; full-year revenue increased by nearly 19% to MXN 37 billion.
• EBITDA: Q4 EBITDA decreased nearly 5% to MXN 4.9 billion; full-year EBITDA rose 2% to MXN 20.2 billion, with an adjusted EBITDA margin of 67.8%.
• Net Income: Q4 net majority income down 22% to MXN 2.7 billion; full-year net income declined 20% to MXN 10.9 billion.
• Cash and Debt: Year-end cash and equivalents at MXN 11 billion; net debt at MXN 16 billion (0.8x last 12 months EBITDA).

2. Strategic Updates and Business Highlights

• Acquisitions: Completed acquisition of URW Airports (renamed ASUR U.S.) for $295 million, contributing approximately $133 million in revenue and $86 million in EBITDA for the last 20 days of December.
• Expansion Plans: Signed a purchase agreement for Motiva's airport portfolio in Brazil, Ecuador, Costa Rica, and Curacao for BRL 5 billion, expected to close in H1 2026.
• Operational Improvements: Opened 41 new retail and service units across the network, enhancing commercial offerings.

3. Forward Guidance and Outlook

• Traffic Expectations: Anticipate gradual stabilization in Mexico as aircraft availability improves; expect continued growth in Puerto Rico and Colombia supported by healthy international demand.
• Commercial Strategy: Focus on enhancing non-aeronautical revenue through improved offerings and operational performance, particularly in Puerto Rico and Colombia.

4. Bad News, Challenges, or Points of Concern

• Traffic Declines: Notable declines in traffic in Cancun (-2%) and Puerto Rico (-3%), with South America traffic down 10.9%.
• Profitability Pressures: Increased operating costs (up 25% year-on-year) due to professional fees, inflation, and changes in amortization methodology in Colombia, affecting EBITDA margins.
• Foreign Exchange Losses: Significant noncash foreign exchange losses impacted net income, contrasting with gains in the previous year.

5. Notable Q&A Insights

• ASUR U.S. Projections: Management indicated that early results from ASUR U.S. should not be considered normalized, with expectations for a jump in performance following the opening of a new terminal at JFK in Q3 2026.
• Motiva Acquisition Update: The acquisition process is progressing well, with expectations to conclude by late Q2 or early Q3 2026.
• Commercial Growth Initiatives: Successful strategies in Puerto Rico focused on convenience stores and operational adjustments in duty-free shops; Colombia's growth attributed to new retail units.

Overall, ASUR is navigating a mixed operational environment, with strategic expansions and acquisitions aimed at long-term growth, despite facing short-term traffic and profitability challenges.